Cagala, Tobias
[VerfasserIn]
;
Glogowsky, Ulrich
[Sonstige Person, Familie und Körperschaft];
Grimm, Veronika
[Sonstige Person, Familie und Körperschaft];
Rincke, Johannes
[Sonstige Person, Familie und Körperschaft]
Public Goods Provision with Rent-Extracting Administrators
Erschienen in:CESifo Working Paper Series ; No. 6801
Umfang:
1 Online-Ressource (35 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.3123629
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 11, 2018 erstellt
Beschreibung:
This paper studies public goods provision in an experiment in which contributors repeatedly interact with rent-extracting administrators. Our main result is that the presence of an administrator reduces contributions but only because rent extraction lowers the MPCR. Analysing the dynamic interactions between the contributors and the administrator, we demonstrate that rent-extraction and cooperation shocks trigger short-run adjustments in the agents' behaviour. However, shocks do not have permanent effects. This explains the long-run resilience of cooperation to rent extraction. We also show that cooperative attitudes and trust are traits that explain permanent differences in the short-run volatility of public goods provision